How Bank of America auto loans work
Bank of America offers a variety of auto loans, including those for acquiring a new or used vehicle from a dealership, purchasing your current leased vehicle, and purchasing a vehicle from a private seller. Additionally, Bank of America offers accessible vehicle loans to individuals who require one. This lender does not finance motorcycles, recreational vehicles, or commercial vehicles through car loans, but does provide a separate small business auto loan.
The length of the loans ranges from 12 to 75 months. Bank of America vehicle financing is available to buyers in all 50 states. The vehicle you wish to acquire must meet a few standards. It has to:
- Be fewer than 10 years old
- Have fewer than 125,000 miles
- Have a value over $6,000 according to NADA
- Not have a rebuilt, salvage, or branded title
This lender is most advantageous for individuals who already have a Bank of America account. Not only will it be convenient to access your vehicle loan using the same login credentials as the rest of your banking, but you’ll also benefit from additional bonuses if you have the bank’s elite status.
Rather than offering autopay discounts, Bank of America rewards consumers who already use its services. Customers who qualify for gold, platinum, or platinum honors will save up to 0.5 percent on their auto loan’s annual percentage rate. To qualify for each category, you must maintain a three-month average balance in Bank of America or Merrill Lynch investment accounts that is more than or equal to the following:
- Gold members (minimum $20,000 balance) : 0.25% off listed APR
- Platinum members (minimum $50,000 balance): 0.35% off listed APR
- Platinum honors members (minimum $100,000 balance): 0.5% off listed APR
While this lender is ideal for existing clients, anyone can apply for a vehicle loan. And, because this lender’s starting interest rates are so low, it may still outperform the competition even without the discount.
Only purchasers with the greatest credit ratings will qualify for the lowest interest rates. Before committing to a car loan, it’s important to shop around and research all available options. Consider factors other than the monthly payment, such as the interest rate and the term of the loan.
Bank Of America auto loans at a glance
| Loan Type | APR | Terms | Amount | Min. credit score |
|---|---|---|---|---|
| New (dealer) | 3.29% | Up to 72 months | Minimum of $7,500 | Not disclosed |
| Used (dealer) | 2.59% | Up to 72 months | Minimum of $7,500 | Not disclosed |
| Refinance | 3.39% | Up to 72 months | Minimum of $7,500 | Not disclosed |
| Lease buyout | 3.69% | Up to 60 months | Minimum of $7,500 | Not disclosed |
| Private Party | 5.69% | Up to 60 months | Minimum of $7,500 | Not disclosed |
Bank of America auto loans pros and cons
| Pros | Cons |
|---|---|
| Can apply online and get approved within minutes. Offers discounts to Bank of America customers who have qualified accounts. No application fee Competitively priced interest rates. | Rate discounts only applicable to customers who maintain high Bank of America account balances. High minimum loan offers. |
An examination of Bank of America’s auto loans in further details
Bank of America provides financing for new and pre-owned automobiles purchased from dealers. Additionally, it offers lease buyouts, refinancing loans, and loans for privately purchased vehicles. Bank of America’s vehicle loan website shows the annual percentage rates (APRs) for each program. However, keep in mind that the rates listed are the lowest possible. The rate you get will be based on a lot of different things, like what kind of car you’re buying, your credit history, and where you live.
Bank of America’s auto loan interest rates are competitive. Experian reports that the average interest rate on a new auto loan for people with good credit (660–719) is 4.68 percent. Bank of America’s lowest APR offer is 3.29 percent on new autos purchased from dealers.
If you’re already a Bank of America customer, you may qualify for loan savings. If you’re a member of the bank’s Preferred Rewards program, you’ll receive 0.25 percent, 0.35 percent, or 0.50 percent savings. Here is a quick recap:
Preferred Rewards Program Discounts
- Gold Tier: Maintain a combined account balance (including a checking and savings accounts, investments, etc.) of $20,000 to earn a 0.25% discount.
- Platinum Tier: Maintain a combined account balance of $50,000 to earn a 0.35% discount.
- Platinum Honors Tier: Maintain a combined account balance of $100,000 to earn a 0.50% discount.
Is Bank of America trustworthy?
The Better Business Bureau has assigned Bank of America an A+ rating. The BBB, a non-profit organization dedicated to consumer protection and trust, assigns ratings based on a business’s reaction to consumer complaints, advertising truthfulness, and transparency regarding corporate practices.
Bear in mind that a high BBB rating does not guarantee a positive connection with a business. Additionally, Bank of America has been embroiled in several public disputes recently:
- Bank of America settled a lawsuit for $75 million, in which the bank was accused of imposing excessive overdraft fees and overcharging clients (2021).
- The Department of Justice alleged that Bank of America discriminated against adults with disabilities by denying them home loans notwithstanding their eligibility. Bank of America paid a total of around $300,000 (2020).
- Bank of America was ordered by the Department of Labor to pay $4.2 million to individuals who claimed the bank discriminated against women, African-Americans, and Hispanic applicants (2019).
If these concerns concern you, you may wish to consider a new lender.
How Bank of America auto loans compare
Bank of America offers several competitive auto financing alternatives. When compared to Capital One, for instance, it comes out on top due to its lower starting APR. Bank of America also permits private party purchases, although Capital One does not.
When comparing Bank of America’s auto loans to those offered by Wells Fargo, the latter offers a significantly cheaper starting annual percentage rate. Unlike Capital One, though, Wells Fargo does not allow you to purchase a vehicle from a private seller. Additionally, Wells Fargo does not provide vehicle loan refinancing, although Bank of America does.
Bank of America | Capital One | BMO Harris | |
|---|---|---|---|
| APR | 3.29% (new vehicle purchased from dealer) | 2.99% (new) | 3.99% (new) |
| Terms | Up to 72 months | 36-72 months | 12-84 months |
| Amount | Min. of $7,500 | Starting at $4,000 | Starting at $2,000 |
| Min. credit score | Not disclosed | Not disclosed | 640-650 |
Are you eligible for a Bank of America loan?
The low starting interest rates on Bank of America’s auto loans make the products attractive to the majority of individuals. If you are already a Bank of America customer, the loans become much more appealing. Additional discounts that may be applied can help to make your auto loan more inexpensive. If you are not a customer of Bank of America and are searching for a small auto loan, you may want to explore elsewhere, as Bank of America’s loans begin at $7,500.
Ensure that you browse around for an auto loan before making a decision. Conduct research on at least three different lenders to determine which package meets your budget and needs the best.
How to apply for a Bank of America auto loan
Applying for a Bank of America auto loan is a relatively simple process. You can do so online and immediately obtain confirmation. Bank of America will notify you via email if more review is required. Or you may call and submit an application over the phone. Prior to applying, ensure that you have the necessary information on hand:
- Name, address, personal email
- Social Security number
- Employment documentation
- Bank statements proving income level
Additional items may be required, depending on the nature of the loan. For refinancing or lease buyout loans, for example, you’ll need the make, model, mileage, and vehicle identification number. Additionally, the bank will conduct a credit check, so ensure that your credit score is as high as possible prior to applying.
If you are approved for a vehicle loan, your rate and terms are guaranteed for 30 days from the date your application was filed. This affords you the opportunity to shop around for the greatest deals.
Your Bank of America auto loan has a number of potential uses. It is valid for the purchase of a new or used automobile from a dealership or an authorized independent dealer, such as CarMax, Enterprise Car Sales, or Carvana. If purchasing a vehicle from a private party, the seller must be the registered owner stated on the vehicle title and the vehicle must be purchased directly from the seller (no consignment sales).
Bottom Line : Bank of America offers financing for new and pre-owned automobiles. The average interest rate on a new auto loan for people with good credit (660–719) is 4.68 percent. If you’re already a Bank of America customer, you may qualify for loan savings. Bank of America has been assigned an A+ rating by the Better Business Bureau. The bank has been embroiled in several public disputes recently. If these concerns concern you, you may wish to consider looking for a new lender.
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